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    Financial Institutions Management Study Set 2
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    Exam 6: Interest Rate Risk Measurement: the Duration Model
  5. Question
    As Interest Rates Decrease the Price of an Asset or Liability
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As Interest Rates Decrease the Price of an Asset or Liability

Question 73

Question 73

Multiple Choice

As interest rates decrease the price of an asset or liability:


A) remains constant
B) decreases
C) increases
D) increases and it increases at a faster rate

Correct Answer:

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